Barclays’ Isa changes to hit savers
Barclays is set to move around 2.3m savers on to a new type of Isa which for two thirds of them will mean worse interest rates.
The bank has already closed 11 of its cash Isas to new customers and will now be withdrawing them from existing customers too.
The new Isas will pay less than the two per cent annual interest, meaning more meagre savings rate for 1.6m customers, with 740,000 benefitting or remaining unaffected.
Barclays has said that it has been urged to simplify its Isas. Lee Chiswell, head of savings at Barclays said:
These changes will make it easier for our customers to understand their products and easier for staff to serve them.
We are writing to all impacted customers to let them know how these changes will affect them, and we have worked with our colleagues to ensure they can support customers who have any questions about these changes.
The new rates will see customers switched to the Instant Cash Isa 1, which pays the following deals: